Global energy infrastructure company New Fortress Energy (NASDAQ:NFE) (NAK) recently lifted its supply and earnings goals for the coming quarter due to its expanding portfolio of facilities and increased demand. However, given that production constraints have stymied global LNG supplies, the supply-demand mismatch could limit the company’s growth in the near term. So, is it worth betting on the stock now? Let’s discuss. Integrated gas-to-power infrastructure company New Fortress Energy Inc. (NFE), which is headquartered in New York City, offers affordable energy and development services to end-users internationally. NFE’s share price has soared 23.6% over the past five days after the company raised its economic outlook for the fourth quarter of 2021 and fiscal year 2022 from those previously discussed in a recently released SEC filing.
However, the company’s shares have declined 39.5% in price year-to-date and 30.4% over the past year. In addition, the stock is trading 50.8% below its 52-week price high of $65.90, indicating short-term bearishness.
Although the company’s debt financing efforts could help it finance several projects worldwide, given its already high long-term debt, the debt financing could make investors nervous. In addition, the abnormal volatility in the liquid natural gas markets and the ongoing supply constraints could mar its growth.